housing market stabilization: There Will Be Fewer Buyers from the Boomer Generation
- 03/21/09 09:34 AM
Many Baby Boomers will not be buying another home anytime soon according to the Center for Economic Policy and Research report “The Wealth of the Baby Boom Cohorts after the Collapse of the Housing Bubble” dated February 2009 and written by David Rosnick and Dean Baker. For precision, the Boomer generation was divided into Late Boomers between the ages of 45 to 54 and Early Boomers between the ages of 55 and 64 (the findings of the report exclude any benefits from defined benefit pensions). The findings of the report indicated: Late Boomers Median household wealth fell by more than 45 … (22 comments)
housing market stabilization: Banks Will Resume Lending When …
- 01/06/09 08:50 AM
The risk is manageable and they once again can make money on: Residential mortgages Commercial mortgages Business loans Auto loans Credit Cards, The govt. is taking action to stabilize the economy and create a market environment in which the risks can be managed and banks will make loans. In addition to taking over Fannie Mae and Freddie Mac and reducing the Federal Reserve Rate to between 0 and 0.25% the govt. has invested more than: 256 billion to address insolvency in the financial markets by stabilizing banks that were deemed to big to fail,credit worthy banks, and AIG. 500 billion for the Federal Reserve to … (6 comments)
housing market stabilization: CEPR Recommendations for Stabilizing the Housing Market
- 12/08/08 05:43 PM
This month, the Center for Economic and Policy Research has made two recommendations for stabilizing the housing market. In bubble markets, markets that have experienced appreciation rates that are much higher than the historical annual appreciation rates, CEPR recommended that government-sponsored enterprises (GSEs - Fannie Mae, Freddie Mac, & Ginnie Mae) take actions to deflate these bubble markets by refusing to buy mortgages in these targeted markets until home prices return to a CEPR recommended price for homes. The CEPR recommendation is that the price of homes should be 15 times the annual rent for an equivalent property in the same … (3 comments)
housing market stabilization: What is a subprime loan and what is Alternative A paper?
- 11/18/08 08:34 AM
The housing market as well as the broader economy has been destabilized by the extension of loans to homeowners with poor credit history and to homeowners with above average credit ratings who were never required to provide verification of income. Without assigning blame it is important to acknowledge that this practive was one of the leading causes in record numbers of foreclosures, declining home values, the freezing of the credit market, and in rising job losses. There is no shortage of opinions as to who is at fault and who should be blamed. However, to understand what the "Experts" and the partisan politicians are saying we need to know … (0 comments)
housing market stabilization: Brainstorming on how the govt can stabilize the housing market
- 11/06/08 04:16 PM
Here are a few of my ideas. The govt. could make a bid to buy foreclosed properties at 60% of the amount of the 1st mortgage with the contingency that the Bank that owns the property has 60 days to accept and close on the govt.s offer or a higher offer. After 60 days the govt.'s offer expires and no subsequent offers will be made by the govt. The govt. could buy up distressed properties within a commuting distance from military bases and use them for military housing. schools and make them available for teachers and school employees hospitals and make them available for hospital … (0 comments)
Many Baby Boomers will not be buying another home anytime soon according to the Center for Economic Policy and Research report “The Wealth of the Baby Boom Cohorts after the Collapse of the Housing Bubble” dated February 2009 and written by David Rosnick and Dean Baker.
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